Businesses are starting to accept the idea of supplier relationship management (SRM) – a strategic effort to understand suppliers and treat them according to their importance to the business. Last year, State of Flux’s research found the most important business drivers for implementing SRM are cost reduction or avoidance (54%), risk management and reduction (52%) and supplier innovation (43%).
Since most businesses depend on suppliers to help deliver their products and services, managing supplier relationships to develop new innovations, avoid risk, and reduce costs can be a key differentiator for future success. But since changing commercial relationships across a whole organisation requires a long-term commitment, can a more nimble programme generate faster returns?
The UK Government's strategic supplier relationship management (SSRM) programme has been judged a great success, by a very favourable internal audit report - an outcome in which we take great pride. We would like to take this opportunity to thank those from the UK Government who have worked with us on this project and wish them every success as they now move in to Wave 2 of this important initiative, to roll out SSRM across another five departments.
State of Flux and 2020 Delivery will shortly be bringing support for Wave 1 of UK Government’s SSRM programme to a successful conclusion. We have worked in partnership with the Cabinet Office and five central government departments over the last 15 months to develop an effective methodology, build capability and roll out SSRM.